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Whether profit above 8% can be shown as per section 44AD in returns?

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Maruti Prasad

Senior Accountant

49 Points Posted on 29 December 2020

whether profit above 8% can be shown as per section 44AD?

Replies (2)

Quick Summary

Yes, you can show profits above 8% under Section 44AD in your tax returns. An audit is typically required only if your declared profit is below 8%. However, be mindful of the turnover limits: Rs. 2 Crore for goods and Rs. 50 Lakhs for services. If your turnover exceeds these thresholds, Section 44AD may not be applicable.

Akhil Goyal

9 Points Posted on 29 December 2020

Yes. audit is required when your profit is below 8%, but if your profit is more than 8% then you can file your ITR with 44AD keeping a check on T/O limits.